I like what Bitey said and I see MasterP(lan)s point.
The taxing system should be dynamic enough to determine that you have $20,000 in legitimate debt and reduce your taxes because of it. If it doesn’t then that sucks.
If you are stupid filthy rich and can pay off $50,000 with no problem, I think being taxed isn’t going to kill a person and I believe it is right and good to have some of that money reinvested into our lower classes to help raise them up. If 1 lower class household gets aid the next generation may be middle class and the generation after that could have more options before it. Naturally the way our society works the poor class could possibly skip the middle class altogether depending on what they do, how they do it, and their resources.
It is tricky and people will get screwed. No system is perfect and someone always suffers. I’d like to at least try to help that suffering person. There are a lot worse things in life than debt.